Rising home prices, rising mortgage rates, and a shortage of inventory are three of the major obstacles that are threatening homebuyers planning their plans for this year. A lot of potential buyers have chosen to hold off until conditions improve, and this trend is especially evident in certain ethnic groups and races, as per two recent research reports by the national association of REALTORS(r).

The research, conducted in collaboration and conducted in conjunction with Morning Consult, shows that prospective buyers who claim they’re waiting for home prices to fall before buying:

• 27% are Asian.
• 24% are Hispanic.
• 20% are Black.
• 15% are White.

The majority of respondents from all races are also saying they’re putting off the decision to purchase a house until mortgage rates fall and more homes that are within their budgets are available, NAR studies reveal. “Home buyers face the most difficult affordability conditions in nearly 40 years due to limited inventory and rising mortgage interest rates,” says Jessica Lautz, NAR’s deputy chief economist and vice director of research. “The impact is exacerbated among first-time buyers, who are more likely to be from underrepresented segments of the population.”

The studies include the 2023 Experiences and the barriers faced by prospective buyers across races/ethnicities, as well as the 2023 Experiences and Obstacles for Prospective Home Buyers Member Study.

Down Payment Hurdles Persist

The current housing market and credit card debts limit buyers ‘ ability to save money for a downpayment, according to the data. The awareness of the down-payment assistance program is uninspiring: A third of buyers who are considering buying across all ethnic and racial groups said they weren’t aware of these programs.

“Down payment assistance programs often fly under the radar for potential home buyers,” Lautz adds. “Using programs like FHA, VA or USDA loans, can help make homeownership more feasible. Agents and experts, like those with the title of REALTORS(r) are able to inform potential buyers about these programs. By doing this, they will attract new buyers, and reduce the gap in homeownership between racial groups.”

Realtor.com(r) provides aid to the downpayment tool(link that is not internal), listing more than 2000 programs.

Discrimination Still a Problem

Another obstacle for homeowners: One out of six buyers who are considering buying across races and ethnicities experience discrimination, as NAR’s statistics show. More than half of Black (63 percent), Asian (60%), and Hispanic (52 percent) customers who claim to be being subject to discrimination claim that they were targeted due to the race they belong to or their ethnicity. A majority of complaints concern the steering process or criteria for qualifying for loans.

NAR provides a variety of sources and programs for its members to stop discrimination during a real property transaction, such as:

• Fairhaven(link to external) is an interactive simulation for training that is based on actual fair housing cases.
• ” Bias Override: Overcoming Barriers to Fair Housing,” an implicit bias-based training course that includes strategies to defeat bias-based thinking.
• At Home with Diversity: A certification course that focuses on serving different consumers.
• The fair housing toolkit(link is external) helps state and local associations make use of grants to support modest housing initiatives in their communities.